Car sales fall 8.17% in January

Growth in passenger car sales slowed down by 8.17 per cent in January 2005 from the over 20 per cent growth the sector saw during the last few months.

Auto industry watchers attribute this sudden slump in the fortunes to consumers postponing car buying decisions anticipating cut in duties and other tariff, in the Budget and, impending Euro III auto emission norms, which will come into effect from April this year.

A total of 77,743 passenger cars were sold in the month against 71,867 units in January 2004, according to figures released by the Society of Indian Automobile Manufacturers (Siam).

Flat sales of market leader Maruti Udyog at 38,863 cars in January 2005 from 38,140 in January 2004 were made up by the double digit demand rise for Hyundai India and Tata Motor vehicles in the segment. Hyundai sold a total of 14,540 cars in January 2005 against 12,546 cars in January 2004, while Tata Motor sold a total 13,992 cars in January 2005 compared with 11,084 cars in January 2004.

Passenger car sales in the ten months of the financial year stood at 6,68,353 units, a growth of 20.2 per cent over 5,55,886 units sold in the corresponding period the previous financial year.

On the export front, passenger car shipments were up to 12, 018 cars in January 2005, from 11, 918 cars in the same month the previous year.

Domestic sales of motorcycles continued their strong run in January 2005, witnessing a 22.8 per cent jump, fuelled by a higher demand for Hero Honda and Bajaj Auto motorcycles to 4,35,665 units in January 2005 against 3,54,640 units in the same month last year.

Falling prices of motorcycles, coupled with their fuel efficiency and availability at various price points, has seen customers' preference shift from scooters to the relatively flashy motorcycles.

Scooter and scooterette sales, however, dipped 4.62 per cent to 70,490 units in January 2005 against 73,905 units in January 2004. Tata Motors and Ashok Leyland continued to fuel the growth in the commercial vehicle segment.

Total sales in January for the segment stood at 29,630 units against 25,154 units a year ago, a growth of 17.7 per cent.

Medium & heavy commercial vehicles contributed maximum to this growth as sales grew 19 per cent to 18,666 units in January 2005 against 15,674 units in the year-ago period.

Light commercial vehicles on the other hand, saw a 15.6 per cent growth and the numbers here stood at 10,964 units against 9,480 units in the same month last year.

Total commercial vehicle sales in the ten months of the current fiscal is up a healthy 24.5 per cent at 2,52,933 units against 2,03,064 units in the corresponding period last fiscal.